As of August 11, 2017, the Property Assessed Clean Energy Act (50 ILCS 501/ et seq.) became law in Illinois.
Illinois local units of government can now create commercial Property Assessed Clean Energy (“PACE”) programs that allow commercial property owners to finance or refinance up to 100% of their energy efficiency and renewable energy projects on a long-term basis, which exceeds standard commercial lending terms that are typically only 5-7 years.
PACE financings in Illinois are attached to the commercial property and “run with the land”. Repayment obligations from energy efficiency and renewable energy projects financed through a voluntary PACE assessment seamlessly transfer to any new owner upon sale of the commercial property. Similarly, the new owner of the commercial property continues to benefit from the ongoing savings from the energy efficiency and renewable energy projects.
On February 15, 2018, the Illinois Finance Authority (the “Authority”) approved a resolution to create statewide, centralized financing options for Illinois local units of government establishing commercial PACE programs in their communities. Authority staff is currently developing these cost-effective financing options.
Use the links on this page to explore program details and eligibility requirements, and to find additional help and information.
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